CBK Governor Charts Kenya’s Path Forward in Global Capital Markets
Washington, D.C., 23 April 2025 – On the sidelines of the 2025 IMF and World Bank Spring Meetings, Invest Africa and Standard Chartered convened a private roundtable to examine Africa’s evolving access to international capital markets. Held under Chatham House Rules, the session brought together senior stakeholders from multilateral institutions, DFIs, global investors, and African policymakers. Key speakers included Dr Kamau Thugge, Governor of the Central Bank of Kenya (CBK); Dr José Viñals, Group Chairman of Standard Chartered; and Paul Hinks, Chairman of Invest Africa USA, who welcomed guests and framed the discussion.
In his keynote address, Governor Thugge delivered a compelling update on Kenya’s macroeconomic trajectory amid heightened global uncertainty. With GDP growth forecast at 5.4% in 2025, inflation down to 3.6%, and a 17% appreciation in the Kenyan shilling, the Governor positioned Kenya as a case study in resilience. Reforms to enhance monetary policy transmission, strengthen the interbank FX market, and increase transparency through the DhowCSD platform were credited with restoring market confidence. Kenya’s renewed engagement with the IMF and commitment to structural reform further underscore its readiness to re-enter capital markets on stronger footing.
A moderated discussion, led by Invest Africa Advisor Aubrey Hruby, delved into four key themes. On capital markets priorities, speakers reflected on Kenya’s progress and the need for regional coordination to strengthen cross-border integration. Institutional credibility and consistency in policy messaging were highlighted as prerequisites for attracting sustained capital flows.
Sovereign issuance and investor appetite sparked debate on the risks and rewards of returning to international markets. Kenya’s recent Eurobond transaction was praised, though concerns were raised around elevated borrowing costs. Participants noted a shift in investor sentiment towards more reform-oriented issuers, with several DFIs urging greater use of amortising structures to mitigate refinancing risk.
Participants then examined diversification strategies, noting the promise of Panda, Samurai, and diaspora bonds as examples of viable alternatives. The conversation emphasised the importance of deepening local markets and expanding the use of blended finance tools to attract institutional capital.
The roundtable concluded with broad consensus on the need for stronger alignment between national reforms and global financial architecture. While Africa’s capital market recovery remains uneven, the path forward lies in policy credibility, structural innovation, and sustained public-private collaboration. Invest Africa and Standard Chartered closed the session with thanks to all attendees, especially Governor Thugge for his leadership and Hogan Lovells for their generous hospitality.
